The document summarizes a 5-year study that analyzed over 7,000 private companies. It compared the top 9 highest performing companies to 9 comparison companies. It also conducted field studies in 53 additional companies. The study found that the top companies grew revenue 3 times faster than industry average and had returns on equity and sales that were 2 times the industry average. When $1 was invested in each of the 6 public breakthrough companies identified in the study, the returns significantly outpaced the S&P 500 over a 10 year period after their IPOs. The document provides examples of some of the breakthrough companies studied.

1. GHTA 2009

2. The Breakthrough Company
5-Year Study
•Analysis of 7000 + private companies over
a 22- year period

3. The Breakthrough Company
5-Year Study
•Analysis of 7000 + private companies over
a 22- year period
•Top 9 performers compared to 9
comparison companies

4. The Breakthrough Company
5-Year Study
•Analysis of 7000 + private companies over
a 22- year period
•Top 9 performers compared to 9
comparison companies
•Field studies in 53 companies

5. Revenue Growth
8
7
6
5
4
3
2
1
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Revenue

6. 5- Year Study
ROS: 3 x
Industry Average
ROE: 2 x
Industry Average

7. $1 Invested in 6 Public Companies
$250.00
$200.00
6 Public Breakthrough Companies
$150.00
$100.00
$50.00
S& P 500
$-
10
11
12
13
1
2
3
4
5
6
7
8
9
Years after IPO

8. Who are these companies?
Company Inc 500 Begin. Rev Status Location
ADTRAN 92 $42.6 mil. Public Huntsville, AL
Chico’s FAS 89 $ 6.2 mill Public Fort Meyers, FL
Express 88 $50.0 mil Private Oklahoma City, OK
Fastenal 82 $3.7 mil Public Winona, MN
Intuit 90 $18.7 mil Public Mountainview, CA
Paychex 82 $14.4 mil Public Rochester, NY
Polaris 86 $90.0 mil Public Medina, MN
SAS 82 $10.1 mil Private Cary, NC
Staubach 85 $ 2.8 mil Private Addison, TX

9. A Curious Surprise

10. Some Principles of Bounce
1. Embrace the Bounce

11. New Steady State
Steady State
Disruptive
Change
Disintegration
Reintegration

12. Tale of Two Companies
The Good Times The Tough Times
Superball
Inc.
The Xmas
Ornament
Group

13. 2. Manage the Anxiety

14. Convert A1 to A2
A 1 A 2
The fear of
The fear of what will happen
what might If we DO NOT
happen to us CHANGE

15. 3. Manage the Mental Factors

16. Managing the Mental Factors
• See things as they really are
• Get people involved in thinking
through the issue
• Involve outsiders

17. Managing the Mental Factors
• Treat causes not symptoms

18. Managing the Mental Factors
• Drive “We Control” vs. “They Control”
thinking

19. Managing the Mental Factors
• Hold hands in traffic

20. Growth Companies Peformance Lab
The RED™ Process